Clients’ lives change every year, but they rarely stop to think about life insurance when they do. A new home, a new baby or a promotion changes what they need, and it falls to the advisor to notice. A simple review process tied to life events keeps clients properly covered and opens new conversations.
Key takeaways
- Buying a home, having a child, marriage, divorce and promotions all commonly change a client’s coverage needs.
- Some carriers let recently insured clients add coverage at the same underwriting class for a limited time.
- Reviews can also uncover older policies with cash value that could buy more guaranteed death benefit through a 1035 exchange.
When life changes, most people think about their day-to-day life, not about how much life insurance they need.
Life events that change coverage needs
- Buying a home. A new mortgage raises the amount a family would need to stay in place.
- A birth or adoption. More dependents and more years of support.
- Marriage or divorce. New obligations, and beneficiary designations that may need updating.
- A promotion or raise. More income to replace. See our article on income multiples for sizing coverage.
- Starting or buying a business. New debts and key person needs.
- A death in the family or new caregiving role.
Adding coverage at the same rate class
Clients who bought coverage recently sometimes want more. One carrier we work with lets clients add a new policy at the same underwriting class as a recently placed policy. The amount available depends on how long ago the coverage was placed and the approved rating. Contact us to check whether a client may qualify, and confirm current program availability.
Reviewing existing coverage for value
A review is also a chance to make sure a client’s current coverage is still cost-effective. A client with substantial cash value who only needs death benefit protection may be able to use a 1035 exchange into a new policy, paying the same premium for a higher guaranteed death benefit. Carrier upgrade programs are another option to explore.
Make reviews a system
The key is having a system: ask about life changes at every meeting, send annual review reminders and track key dates. Our Policy Review Kit includes sample approach letters and talking points. Contact us for a copy or for help with any policy review.
Frequently asked questions
How often should clients review their life insurance?
At least every few years and after any major life event, such as marriage, divorce, a birth, a home purchase or a significant income change.
Can a client add coverage without new underwriting?
Sometimes. Some carriers allow recently insured clients to add coverage at the same rate class within limits. Riders such as guaranteed insurability may also allow increases.
What is a 1035 exchange?
A tax-free exchange of one life insurance policy for another under Section 1035 of the tax code, which can let clients move cash value into a more suitable policy.
Reviewed by Tim Fuller on 2026-09-26
Tim Fuller
President, SRS Inc.
Tim leads SRS Inc., a full-service IMO (Independent Marketing Organization) and BGA (Brokerage General Agency), connecting independent financial professionals with life, annuity, disability income, and long-term care solutions from 60+ carrier partners.
Connect on LinkedIn →We’re Here to Help
Have a question about what you just read, or a case you’re working on? Tell us a bit about what you need, and a member of the SRS team will follow up with you personally — no obligation, no hassle.
